The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2016 and 2017, and on its statement of earnings for the year ended December 31, 2017. Amounts are in millions of dollars:

1. Prepare the investing activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2017

2.

Compute each of the following for the year 2017: (a) quality of earnings ratio, (b) capital expenditures ratio, and (c) free cash flow.

3.

.	Based on your answers to (1.) and (2.) above, determine the net cash flow from financing activities. (Hint: This can be done without preparing the financing activities section of the statement.)

4.

The president of Laporte Inc., Tanya Turcotte, was provided with a copy of the operating activities section of the statement of cash flows that you prepared in (1.), and made the following comment: This report is supposed to show operating cash inflows and outflows during the year, but I dont see how much cash Laporte Inc. received from customers and how much it paid to trade suppliers and for income taxes. Please ask whoever prepared this statement to provide me with these numbers. Based on Tanyas comment, compute the following amounts for 2017: (Enter your answers in millions.)

Statements of Financial Position 2017 Cash $ 140 Accounts receivable 76 Merchandise inventory 59 Long-term investments Property, plant, and equipment 246 Accumulated depreciation (49) 2016 $ 84 56 64 50 186 (64) Total assets $ 472 $376 $ 56 7 146 Accounts payable Income taxes payable Long-term borrowings Contributed capital Retained earnings Total liabilities and shareholders equity 70 8 76 180 42 203 60 $ 472 $376 Sales Cost of sales Statement of Earnings $220 (132) 88 (10) (53) Gross profit Depreciation expense Other operating expenses Earnings from operations Gain on sale of investments Loss on sale of equipment Earnings before income tax Income tax expense 25 6 (2) 29 8 Net earnings $ 21 21 LAPORTE INC. Statement of Cash Flows (Partial) For the Year Ended December 31, 2017 Cash flows from operating activities: Net earnings s Add (deduct) items not affecting cash: Depreciation expense Gain on sale of investments Loss on sale of equipment Increase in accounts receivable Decrease in accounts payable Decrease in income tax payable Decrease in merchandise inventory 10 (6) 2 (20) (14) (1) 5 6 Net cash used for operating activities S 3 a. Cash collected from customers b. Cash paid to trade suppliers c Cash paid for income taxes